Saut points to the recent action in the market as encouraging, as the recent rally has been the first time the market has ignored bad news in two months. In terms of technical support levels, he says to watch the 1330-1340 level to see if the market will continue to ignore bad news.

Lastly, it's interesting to see Saut mention how he treats position sizing as well as profit-taking and loss prevention. He likes to sell 25-33% of a position if it is up 100% and if something goes against him by 15-20% he likes to either hedge, sell some, collar, etc. We've previously highlighted Saut's approach to risk management.